Why risk managemet?
Business’s of any kind any kind face internal and external factors and influences that make it uncertain hether,when and the extent to which they will achieve or exceed their objectives.

The effect this uncertainty has on the business’s objectivies is “risk”.Risk management can be applied across an entire organization, to its many areas and levels, as well as specific functions,projects and activities.

All activities of a business
involve risk.
All activities of business involve risk.Business’s mamage risk by anticipating.understanding and deciding whether to modify it.Throughout this process they communicate and consult with stakeholders and monitor and review the risk and the
controls that are modifying the risk.

The management of risk
enables businesses to;

(a) increase the likelihood of achieving objectives;

(b) encourage proactive management;

(c) improve governance;

(d) improve financial reporting;

(e) improve controls;

(f) minimize losses;

(g) improve the identification of opporrtunities and threats;

(h) be aware of the need to identify and treak risk throughut the organization;

(i) improve stakeholder confidance and trust;

(j) establish a reliable basis for decision making and planing;

(k) achieve compatible risk management practices between organisations and nations;

(l)effectively allocate and use resources for risk treatment;

(m)improve operational effectiveness and efficiency;

(n)enhance health and safety performance as well as environmental protection;

(o)improve loss prevention and incident management;

(p)comply with relevant legal and regulatory requirements and international norms;

(q)improve organizational learning;and

(r)improve organizational resilience

AS NZS ISO 31000-2009 Risk Management